A judge in Texas has set an expedited schedule for the U.S. Securities and Exchange Commission's (SEC) lawsuit against Ethereum developer Consensys.
The legal proceedings are expected to take place between July 29 and November 26, suggesting a decision could be reached in late 2024 or early 2025.
Judge O'Connor agreed to consider the merits of the case on an expedited timetable. The key question at hand is whether the SEC has Congressional authority to regulate MetaMask, a product of Consensys, as a securities dealer and issuer. This situation was announced by Consensys' lawyer Bill Hughes on a social media platform.
The SEC had alleged that the staking programs of Lido Finance (LDO) and Rocket Pool (RP) altcoins constituted unregistered securities.
The SEC filed a lawsuit against Consensys last month, alleging that the company violated securities regulations through its MetaMask Staking and MetaMask Swaps services. MetaMask Staking allows users to stake ETH and MATIC, while MetaMask Swaps allows users to exchange various cryptocurrencies.
According to a statement made by the SEC on June 28, Consensys is accused of unregistered offers and sales of securities by participating in the distribution of staking programs. The SEC also alleges that Consensys operated as an unregistered agent with respect to these transactions.
The SEC argues that Consensys entered the U.S. securities market in this way without providing investors with the protections afforded by the federal securities laws.
*This is not investment advice.